Jawad Ahmed ISLAMABAD, June 08 (INP-WealthPK): The revenues of Lotte Chemical Pakistan Limited (LOTCHEM) – the only world-class manufacturer and supplier of Purified Terephthalic Acid (PTA) in Pakistan – increased by 39% to Rs20.3 billion in the first quarter (January-March) of the calendar year 2022 from Rs14.7 billion in the corresponding period of last year. This, along with a larger margin, resulted in a gross profit of Rs4 billion for the quarter compared to Rs2.3 billion for the same period the previous year. Quarterly financial performance The taxation charge for the quarter is based on statutory income tax rate and tax under Final Tax Regime (FTR) as adjusted by the movement in the deferred tax account. Earnings per share (EPS) for the quarter stood at Rs1.73 per share as compared to Rs1.08 per share for Q1 2021. The company was incorporated in Pakistan on 30 May 1998 under the Companies Ordinance, 1984 which was repealed by the Companies Act 2017. The principal activity of the company is to manufacture and sale Pure Terephthalic Acid (PTA). Shareholding pattern As of December 31, 2021, 75% of the company's shares were held by affiliated entities and associated parties. The general public owned over 12% of the total shares, followed by modarabas and mutual funds, which possessed nearly 2%. The “others” category owned about 9.6% of the shares, while roughly 1% is split among the remaining stakeholder categories. The board of directors, the chief executive officer, their spouses and minor children owned a negligible percentage of the company’s shares. Company turnover Since the year 2016, the company’s top line has largely been expanding at more variable rates, while profit margins was modestly fluctuating in 2020 due to pandemic and lower PAT price. After a substantial dip in 2020, sales in 2021 showed a significant increase. The income for year 2018 was Rs57.4 billion, up 55% from Rs37 billion the previous year, owing mostly to a higher average PTA price per tonne. The company made a gross profit of Rs7.4 billion for the year, up from Rs1.2 billion for the same time previous year, thanks to favorable trading circumstances throughout the year. Despite decreased sales volume in year 2019, income of Rs60.5 billion was up by 5% from Rs57.4 billion the previous year, owing to a higher average PTA price per tonne due to the depreciation of the Pakistan rupee against the US dollar. The company made a gross profit of Rs7.9 billion for the year, up from Rs7.4 billion in the previous year's similar period.         In year 2020, revenue of Rs39 billion was down 36% from the previous year's Rs60.5 billion, owing primarily to reduced PTA prices. The company posted a gross profit of Rs2.6 billion for the year compared to gross profit of Rs8 billion during the same period last year. Owing to the overall impact of inflation, distribution and selling expenditures increased by 4%, while administrative expenses increased by 3%. Other expenses were lower this year than the previous year, primarily due to fewer provisions for Workers' Profit Participation and Workers' Welfare Funds on the back of lower profit. Owing to increased PTA prices, revenue for year 2021 was Rs67.2 billion, up by 72%s from Rs39 billion the previous year. The company posted a gross profit of Rs7.6 billion for the year compared to the gross profit of Rs2.6 billion during the same period last year. On the other hand, distribution and selling expenses were 12% higher than the last year due to the overall impact of high inflation. Earnings per share (EPS) for the year increased to Rs3.07 per share compared to Rs1.40 per share for the last year.